Saudi Arabia Launches AI-venture Fund to Nurture Homegrown Startups
It plans to support around 25 startups over the next three years, especially those based in Saudi Arabia.
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[Image source: Chetan Jha/MITSMR ME]
Real estate developer Red Sea Global, wholly owned by the Public Investment Fund (PIF) of Saudi Arabia, has partnered with venture capital firm Bunat Ventures to launch an artificial intelligence startup dedicated fund in Saudi Arabia.
The new venture will back early- and growth-stage companies, either built on AI or using the technology as a core component of their operations.
“Together, we are building a platform to empower the next generation of Saudi AI pioneers who will redefine industries, shape communities, and strengthen Saudi Arabia’s leadership in the global innovation arena,” said Khaled Zainalabedin, CEO and managing partner at Bunat VC.
It plans to support around 25 startups over the next three years, especially those based in Saudi.
The AI-focused venture aims to strengthen the Kingdom’s innovation ecosystem by focusing on local entrepreneurs and Saudi-founded global ventures entering the country. Job creation, attracting international talent, and positioning the nation as a leader in the global AI landscape will be vital to the venture.
The Kingdom is home to 1,733 startups as per the Saudi Arabia Ecosystem Portal data. Notably, over $2.6 billion in venture capital funding has flowed into the Saudi market since 2018, making it the 23rd among the top 100 emerging ecosystems globally.
The country has been strategically moving beyond oil to diversify its economy, largely on the back of advanced technology. It recently announced the opening of its investment borders to all foreign investors in financial markets, effective from February 1, making a departure from the Qualified Foreign Investor practice.
